Barratt Development’s shareholders should hope the boost in housebuilding promised by the Labour government will kick in soon.

Shares in the housebuilder were down around 2% on Wednesday after the group reported an 18% drop in completions and 21% drop in revenue for the full year period ended 30 June. Adjusted profit before tax was down by 56%.

“Barratt Developments has struggled to build momentum and full-year numbers were a painful read for investors. The group completed around 14,000 new homes last year, which was towards the top end of group guidance,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“But that still marks a big drop off from the 17,206 seen in the prior year as mortgage and affordability pressures are still weighing on potential buyers. Momentum did improve slightly as the year progressed, but further easing of mortgage rates will be necessary for activity to pick up significantly. With fewer homes being sold and at lower prices, less cash has come through the front door. Alongside elevated levels of incentives, used to convince buyers to sign on the dotted line, underlying pre-tax profits have taken a big hit and more than halved year-on-year.”

The acquisition of Redrow featured heavily in Barratt Development’s full-year results and investors will hope the combination can help turn the tide for the enlarged group.

The deal is in the hands of the CMA and both parties await competition clearance before the combination can finalised. Due to regulatory constraints, guidance for FY25 couldn’t include Redrow’s numbers, so Barratt provided guidance for themselves only.

The forecast of only 13,000 to 13,500 completed homes in FY25, lower than FY24’s 14,000, will certainly raise some eyebrows.

Helium One has provided an update on its Tanzanian helium operations and the completion of extended well tests at Itumbula. The company said the well tests were a major milestone and that it was looking forward to the next stage of development. 

Investors will be pleased to see strong shows of helium during the tests.

The fractured Basement interval yielded a sustained average of 5.5% helium (air corrected), with peaks reaching 6.7%. Equally promising results were observed in the faulted Karoo Group, which produced a sustained average of 5.2% helium (air corrected), achieving a maximum concentration of 7.9%.

In terms of flow rates, the well demonstrated robust natural performance. Under current conditions, using a 36/64ths of an inch choke setting, the well achieved a maximum flow rate of 2,701 barrels per day (bpd) of fluid. This translates to approximately 834 standard cubic feet per day (scf/d) of helium.

The major constraint for new Helium projects is the cost to bring to production. Finding Helium is one thing; commercialisation is something completely different.

Although today’s announcement was broadly positive, the company has yet to confirm the commercial viability of the Itumbula West-1 project. The mixed nature of today’s update was reflected in mixed trading for Helium One shares, which started the day positively but were quickly sold into.

The company suggested they would have to employ a form of artificial lift to make the project economically viable. However, the company didn’t share the type of artificial lift being considered, leaving questions about how expensive the next phase of testing may be and how the artificial lift will impact the economics of the project.

The company also said financial modelling demonstrated positive ‘project economics with artificial lift and additional development wells’. The statement suggests that economic viability is conditional and requires an expanded work programme.

Investors won’t have to wait too much longer for formal evaluations with the feasibility study underway that will form Helium One’s mining application.

The FTSE 100 slipped on Tuesday as traders returned to their desks after the summer break and awaited fresh catalysts for equities.

That catalyst could come later this week from the Non-Farm Payrolls – the last jobs report before the Federal Reserve meets to decide on interest rates towards the end of September.

Non-Farm Payrolls are always eagerly anticipated, but August’s reading is particularly important given the volatility that followed July’s jobs report. There have also been downward revisions to prior jobs reports so a weak figure suggesting weakness in the US could send waves through global equities.

There is a feeling of nervousness among traders as we move into September with US and UK stocks near record highs. In recent years, September has brought severe bouts of volatility and with the concerns that sparked a sharp, yet brief, sell off in early August still rumbling in the back ground, some analysts are cautioning we could be in for a bumpy ride this month. 

“There are some tough seasonal trends ahead, as September has historically been a poor month for the S&P 500,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Couple that with political and geopolitical uncertainty, and investors are likely in for a choppy month. US non-farm payroll figures on Friday are the highlight of the week, which could have a meaningful impact on the size of the first Fed cut later this month.”

Investors were provided with some UK data to consider in Retail sales and Barclaycard spending data, although this barely moved the dial. 

Ashtead was among the top risers after the plant hire group announced positive first-quarter results that suggested the group could be turning a corner after a period of soggy growth.

“Sometimes when a company has been under pressure it’s enough that things haven’t got any worse. That has proved to be the case with Ashtead’s latest quarterly results,” said Russ Mould, investment director at AJ Bell.

“While the three-month period could hardly be characterised as stellar, the equipment hire company is sticking with its full-year forecasts.

“Ashtead has been able to eke out some growth and the hit to profit is largely linked to lower levels of used equipment sales, which is not its core business.”

The negative impact of soft Chinese data over the weekend was still evident in UK stocks on Tuesday, with miners Rio Tinto and Antofagasta lingering at the bottom of the leaderboard.

Rightmove was the top faller as investors booked profits after its shares spiked due to a potential takeover.

Majestic Corporation, a sustainable circular economy solutions provider specialising in recycling precious and non-ferrous metals, has announced its plans to accelerate its UK expansion through the acquisition of Telecycle Europe Limited, a specialist e-waste recycling business based in Deeside, UK.

The acquisition, valued at up to £2 million, is set to be completed by 31 December 2024, subject to the delivery of a specified quantity of recyclable materials.

The acquisition aligns with Majestic’s strategic goal to expand its presence in the UK, a market the company believes presents significant growth opportunities in reducing supply chain waste of critical minerals.

In 2021, the UK generated approximately 1.6 million tonnes of e-waste, underscoring the urgent need for effective recycling solutions. By acquiring Telecycle, Majestic aims to address this challenge whilst strengthening its market position.

The acquisition means Majestic will gain a fully licensed and ISO-certified facility at Telecycle’s Deeside plant, providing a wholly-owned UK subsidiary for e-waste collection, sorting, processing, and shipping operations. This move is expected to lead to immediate revenue recognition for the year ending 31 December 2024 as Telecycle is integrated into the enlarged group.

Majestic believes the acquisition will provide operating efficiencies, leading to improved margins for both businesses. It also presents an opportunity to reduce the UK’s supply chain waste of critical and precious metals, including lithium, gold, cobalt, copper, and nickel.

The enhancement of relationships with UK suppliers is anticipated to help grow Majestic’s UK recycling volumes. This strategic move positions Majestic to capitalise on the significant growth opportunities in the UK recycling market whilst contributing to the country’s sustainable waste management efforts.

“We are delighted to have conditionally agreed to acquire Telecycle and expand our UK operations,” said Peter Lai, Executive Chairman of Majestic Corporation.

“The UK market’s commitment to sustainability and recycling makes this Acquisition a crucial driver for future growth. We look forward to integrating Telecycle into Majestic and updating shareholders on our progress.”

Ashtead shares rose on Tuesday after the North American-focused plant hire group announced rising revenue, which bodes well for the company as the Fed cuts rates.

After a decade of bumper growth, Ashtead’s growth outlook has become increasingly unclear amid mixed US construction activity.

However, today results will be a source of encouragement for investors as revenues grew 2% in the group’s first quarter. The company attributed the tick higher in revenue to rising rental volumes and the amount they were able to charge for an average higher.

EBITDA rose 5% but operating profits slipped 2% as a result of higher interest costs. But with the Federal Reserve on the verge of cutting interest rates, this constraint on earnings may be about to ease. 

Ashtead shares were over 4% higher at the time of writing.

 “Equipment hire firm Ashtead has today announced a changing of the guard in terms of its CFO but perhaps more pertinently, a slip in profit in comparison to last year. Ashtead, which services construction, emergency response and events, has seen its numbers hurt by a comparative slowdown in the US, where the company does the lion’s share of its business,” said Adam Vettese, Market Analyst at investment platform eToro.

“Revenue is actually up year-on-year but this was not enough to offset increasing interest and depreciation costs, which we expect to ease as the Fed cuts rates. As such, the firm has maintained its guidance for the rest of the year.”

Although growth concerns may linger, one of the biggest considerations for investors is whether Ashtead remains a London-listed company or decides to follow other firms in switching its listing to the US in pursuit of a better valuation. 

“There is likely to be a fresh round of questions about whether Ashtead is looking to shift its listing to the US after news that the CFO role will be based in the US when Michael Pratt retires in September. Alex Pease will take up the role, and management has confirmed it will likely be based in the US,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.